Peso retreats to 43-to-dollar level over news of China slowdown

Peso to dollar rate on Tuesday, March 20, 2012: P43.07 AFP PHOTO

MANILA, Philippines—The peso fell back to the 43-to-a-dollar territory on Tuesday amid concerns of a potential slowdown of China, one of the biggest export markets for exporting countries like the Philippines.

The local currency closed at 43.07 against the US dollar, down by 18 centavos from the previous day’s finish of 42.89:$1.

Intraday high hit 42.80:$1, while intraday low settled at 43.10:$1. Volume of trade amounted to $1.139 billion from $865 million previously.

The decline in the peso and other key Asian currencies came amid concerns rising fuel cost in China would dampen growth of the world’s second-biggest economy. A slowdown in China is seen to adversely affect growth performance of countries like the Philippines given its significant amounts of trade with neighboring countries.